Special Interest Groups (Such as Doctors,teachers,lawyers,health Insurance Companies,the Automobile Industry

question 39

Multiple Choice

Special interest groups (such as doctors,teachers,lawyers,health insurance companies,the automobile industry and others) can best be characterized by which of the following statements?

• A) They are constantly working the government to seek rents from policy decisions.
• B) They are resistant to change in governmental policies that benefit them at the expense of others.
• C) They help push through federal policies that result in technological backwardness, low productivity and less overall economic growth.
• D) They can be characterized by all of the above.

Analyze the impact of breaking up monopolies on market outcomes.

Understand the concept of economies of scale as it applies to monopolistic markets.

Understand the fundamental characteristics of monopolies, including demand curves and industry supply.

Recognize the role of economies of scale and natural monopolies in the industry.

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Definitions:

Evaluation of Information

The process of critically analyzing and assessing data or facts to determine their validity, relevance, and reliability.

Automatic System

A mental process that operates without conscious effort, often responsible for habits and intuitive reactions.

Conscious System

The aspect of the mind that involves awareness of oneself and one's surroundings.

Subjective Norms

Beliefs about whether significant others think one should engage in a behavior.